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Talking Logistics: “The Impact of Electronic Logging Devices: Separating Hype from Reality”

January 27, 2017

The Impact of Electronic Logging Devices: Separating Hype from Reality

“I was forwarded an analyst email that said ‘ELDs are coming, the world is going to end, capacity is going to disappear, rates are going to go up 25 percent…’ I’m exaggerating a little bit, but not much,” said Ben Cubitt, Senior Vice President, Consulting & Engineering at Transplace in a recent episode of Talking Logistics. He was referring to some of the hype and speculation surrounding the electronic logging devices (ELDs) mandate, which goes into effect in December 2017.

The reality, however, is that the vast majority of large carriers are already ELD compliant, according to a survey Transplace conducted last year with over 400 carriers. Eighty-one percent of large fleets (those with more than 250 trucks) reported that they had achieved full ELD implementation, with the remaining 19 percent working towards implementation. “A lot of these large carriers have been using ELDs for multiple years,” said Cubitt. “They’ve worked out the kinks and have learned how to plan better, so for large carriers, this is a non-issue.”

Data from recent transportation procurement engagements support the survey findings. “As we’ve been doing bids, we’ve been asking carriers if they have implemented ELDs, and if not, what their plans are,” said Cubitt. “One recent example is a paper and packaging shipper with 134 carriers in the bid. Of those carriers, 103 had more than 250 trucks and 93 of them had already implemented ELDs, with 5 planning to implement within 90 days, 2 within 180 days, and only 3 were planning to implement beyond the 180-day period. So again, 95 percent of the large carriers in this bid for this particular shipper were already [or soon going to be] ELD compliant.”

Read more here.